Crypto-Assets Can Help Russia Reenter Global Financial Market, Lawmaker Says Cryptocurrency

Digital financial assets like cryptocurrencies can help Russia reach the global financial market despite Western sanctions, a lawmaker working on crypto regulation has said. The official believes that the country is capable of setting up national crypto exchanges and should support mining.

Russia can establish its own cryptocurrency exchanges, deputy insists

The crypto space is an area where it is difficult to impose restrictions on Russia, a member of the State Duma, the lower house of the Russian parliament, recently pointed out. Speaking to Parlamentskaya Gazeta, Alexander Yakubovsky pointed out that the country has the resources to set up its own cryptocurrency exchanges and use alternative payment systems and platforms.

Lawmakers admitted that global trading platforms like Binance are under pressure to support restrictions against the Russian Federation. At the same time, he noted that experts from the world’s leading crypto exchange are advising lawmakers in their efforts to design a regulatory framework for digital assets in Russia.

Yakubovsky, a member of the Duma task force tasked with proposing comprehensive crypto regulation, said the new legislation can provide Russia with access to the financial market, which Western governments are now trying to shut down in Moscow. This will depend on the effectiveness of the new framework, he explained and said:

In addition, the competent development of digital financial assets will minimize the damage caused by the sanctions against the country.

The official also said that Russian crypto miners will not leave the global mining market. Yakubovsky reminded the publication that last year Russia ranked third in terms of mining capacity, which he described as a “tremendous amount of power”. The country also has excess generation capacity and, in his view, it would be unwise not to use it.

Asked about disagreements between the Central Bank of Russia, which proposed a blanket crypto ban in January, and the Finance Ministry, which favors regulation under strict rules, the MP noted that the situation has changed. Most other government agencies support Minfin’s approach, and a report released in early March found that Russian authorities were continuing their legalization efforts.

Lawmakers and experts from various departments have been working to close the regulatory gaps that remain after the “Digital Financial Assets” law came into force last year. In February, the Ministry of Finance submitted a draft law to the federal government, “On Digital Currency“, which aims to legalize crypto investments while confirming the ban on the use of cryptocurrencies for payments in Russia.

Keywords in this story

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Do you think Russia will be able to use cryptocurrencies to evade Western sanctions? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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